Loan guarantee for apartment associations



A loan guarantee is suitable for apartment associations who want to take a bank loan for financing work performed to raise the quality of life for their residents but whose risk is deemed by banks to be higher than normal (e.g. a high share of people are in debt, the apartment is a building located in an area with low property values or in a monofunctional settlement, the investment per square metre is significantly higher than normal).

For who?


apartment association

Service is suitable if

  • the loan recipient is an apartment association.
  • the apartment association is creditworthy.
  • the recipient has a decision made by the general meeting on performing renovation works, taking a loan and entering into a loan guarantee agreement. The renovation works are required by the apartment building’s management plan.
  • Additional information: an apartment building is considered to be any home that has at least 2 apartments.

Important conditions

Important conditions:
  • Eligible for financing: works that ensure stability of the building structures or which improve the living conditions for the residents, including construction work, maintenance work and landscaping work undertaken to preserve and improve the economy, safety and upkeep of the building, the building’s service land and buildings serving the building and present on the land.
  • Up to 80% of the loan amount
  • The guarantee amount decreases in proportion to the loan amount
  • Guarantee fee of an annual 1.0% to 1.5% of the balance of the guarantee
  • The building to be renovated must be insured against fire, plumbing accident, natural disaster and vandalism. Insurance is required throughout the loan period.
  • The credit shall be paid out on the basis of invoices from a construction company or companies in the extent of the acceptance report(s).

Good to know

Application process

Application for the apartment building guarantee requires going through a bank, which organizes the guarantee and later reporting.

Contact us

Kristo Hütt

Kristo Hütt

Client Manager

kristo.hutt [at]